EBC Markets Briefing | ​Gold languishes on US optimism

Gold prices hovered on Wednesday near their lowest point in more than one week, under pressure from a stronger dollar. The Fed's meeting minutes is due later today.

Trump unveiled a wave of new proposed tariffs, but the dollar barely reacted to the threats on growing optimism that the US economy can largely withstand the impact of trade disputes.

The president said he would impose a 50% tariff on copper imports on Tuesday, and suggested more steep sector-specific duties are on the way. He added pharmaceutical imports could face a 200% tariff.

Those are separate from the "reciprocal" tariffs unveiled in early April, complicating trade talks before the August deadline. On top of that, he voiced strong opposition to "anti-American policies of BRICS" earlier.

Speculative traders trimmed bets on the dollar decline in the week through 1 July, according to CFTC data. They still held some $18.3 billion worth of short positions to hedge fading US exceptionalism.

Physically backed gold ETFs attracted $38 billion in inflows during the first half of 2025, the biggest semi-annual increase since early 2020, according to the WGC. But gold prices lost it steam after mid-June.

Bullion wallowed below 50 SMA, and there are few signs of reversal. It is more likely to fall further towards the low around $2,375 – the level where the latest rally began.

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